Deposits with the banks are beneficial to the depositors as well as to the nation". Explain the statement
Answers
Answer:
Deposits with the banks are beneficial to the depositors as well as to the nation.
Benefits to the Depositors:
1.Banks accepts the deposits and pay interest to the depositor.
2.People’s money is safe with the banks.
3.People can withdraw the money as and when they require.
Benefits to the Nation:
1.Banks use money of the depositor to afford loans.
2.There is a huge demand for loans for various economic activities.
3.Banks mediate between those who have surplus funds and those who are in need of these funds. Thus it helps in the economic development of the nation.
Answer:
Hlo mate your answer is...
1.To free borrowers from the Clutches of informal sources likeMoney lenders and all who charge High interest rate and Follows unfair Means to get their money back.
2.Reduces Cost of Borrowing as Interest rate is low and is Monitored by RBI
3.Reasonable credit facilities stimulate more economic activities & employment Oppurtunities which lead to economic development
4.It helps to meet expenses of production to start new business activities & personal requirements like expenses on Higher education,purchase of vehicles and Construction of Homes etc.
5.It is important that Formal sector credits to be expand
Which promote employment generation and Infrastructural development of the Nation